The United Arab Emirates (UAE) has made a remarkable leap on the Kearney Foreign Direct Investment (FDI) Confidence Index for 2024, climbing from the eighteenth spot in 2023 to the eighth position globally this year.
This achievement underscores the UAE’s growing prominence as a global investment powerhouse. Notably, the nation now ranks second in the Emerging Markets Index, positioned right after China.
The FDI Confidence Index, now in its 26th iteration, is recognized as a key indicator for projecting the flow and trends of global FDI. This advancement is a testament to the UAE’s successful efforts in diversifying its economy and strengthening its standing as a strategic regional hub in the international business landscape.
The UAE’s economy, known for its diversification, has seen substantial growth across its principal sectors, largely thanks to the state’s diversification strategies. Reflective of this growth is the rise in FDI inflows, which surged from $20.7 billion in 2021 to $22.7 billion in 2022. This accounts for 60% of the total FDI attracted by the countries of the Gulf Cooperation Council (GCC).
Rudolf Lohmer, a partner at the National Institute for Transformations – Kearney Middle East, noted that the UAE’s significant climb in the FDI Confidence Index mirrors the visionary approach and the dedication of its leadership towards economic diversification. This surge not only reinforces the UAE’s appeal as a premier destination for global investment but also signals the confidence of international investors in the UAE’s dynamic economy, bolstered by continuous policy reforms.
Lohmer highlighted the UAE’s resilience, state-of-the-art infrastructure, robust capital markets, and vibrant technology ecosystem as key factors contributing to its capacity to attract significant global investment amidst fierce international competition.
He further emphasized the UAE’s commitment to fostering an ideal business environment, propelled by advancements in technology that encourage investments in critical sectors such as fintech, e-commerce, agritech, logistics, ICT, and renewable energy.
Additionally, the UAE’s top-tier infrastructure significantly boosts its attractiveness for investments, not only easing business operations but also enhancing the overall quality of life. This commitment to infrastructural development is crucial in attracting valuable sectors and maintaining the UAE’s long-term economic growth.
This notable ranking reflects the UAE’s strategic initiatives to cement itself as a leading destination for global investments, showcasing its proactive economic policies, strategic location, and comprehensive infrastructure that continuously attract international investor interest.
